1981 (9) TMI 167

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....relating to asst. yr. 1974-75. 2. The issue involved in this appeal is whether, on the facts and in the circumstances of the case, the assessee is entitled to inclusion in the capital employed for the industrial undertaking the cost of a generator amounting to Rs. 1,83,262 for the purpose of computation of relief under s. 80J of the IT Act, 1961. 3. The facts on the basis of which we have to....

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....t is common ground that as on 1st April, 1973 i.e., the first day of accounting period relevant to the assessment year under appeal, the generator was owned by the assessee. 4. On the above facts, the ITO allowed relief under s. 80J in the original assessment completed by him on 30th March, 1977 determining the total income of the assessee at Rs. 18,09,224. However, due to certain audit objecti....

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....relief in para 5 of his impugned order. This is now challenged in appeal by the Revenue. 5. We have heard the parties before us. As stated earlier, the facts are not in dispute. The ld. counsel for the assessee relied upon the ratio decidendi of the following judgments: (i) CIT vs. Indian Oxygen Ltd.(1978) 113 ITR 109 (Cal) (ii) Ravi Machine Tools (P) Ltd. vs. CIT (1978 CTR (Kar) 280 : (1....

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....e Revenue. 6. After careful consideration of the rival submissions we find that there is no case for an interference in the order of the ld. CIT (A) at the instance of the Revenue. The authorities cited by the ld. counsel for the assessee clearly lay down the proposition that if the asset was owned by the assessee on the first day of the previous year and it was paid for, the consideration paid....